Yuka Hayashi writes from Tokyo in the Wall Street Journal March 1:

Will global markets start to treat Japan as the next Greece?

Bond traders up to now have been relatively sanguine about Tokyo's massive pile of government debt. But that attitude could be tested over the next three months, as Japan's new center-left government nears a self-imposed June deadline for crafting a plan to get its fiscal house in order. Out-of-control sovereign debt is what plunged Greece into crisis.

The main tool being considered to address Japan's debt problem is an increase in the sales tax, which at 5% is among the lowest in the industrialized world. In Europe, such taxes run closer to 20%. But members of Prime Minister Yukio Hatoyama's cabinet also worry that a tax increase could hammer consumer spending and push the country back into recession.

To read more, click this link:

http://online.wsj.com/article/SB20001424052748703940704575089952215368646.html